Luxury car importer charged with tax evasion
THE BUREAU of Internal Revenue (BIR) filed with the Department of Justice a criminal complaint against a “grey market” luxury car importer for P638.36-million tax evasion.
In a Thursday briefing, Commissioner Kim S. Jacinto-Henares said the BIR found Eddie M. Estallo, Jr. liable for the tax after he filed inaccurate income and value-added tax returns for 2013 and failed to submit the returns altogether in 2014.
This was despite his Quezon City-based company, Amest Trading, making importations worth P1.19 billion for those two years as shown by customs records.
Ms. Henares noted that Mr. Estallo did file his monthly percentage tax returns for July 2013 to July 2014, but paid “very minimal amounts.”
Because the car trader did not declare any source of expenses he incurred for the importations, Ms. Henares said “the total amount of his importations is considered his undeclared income and must be subjected to income tax.”
Mr. Estallo faces charges for violating Sections 254 and 255 of the National Internal Revenue Code (NIRC).
The car importer was earlier dragged into controversy after the House of Representatives’ Ways and Means Committee flagged his company in December for allegedly smuggling luxury vehicles into the country. The House panel said Amest was registered as an automotive spare parts importer but its biggest shipments pertained to Hyundai Starex vans.
The BIR also filed a complaint against Blue Rhein Chemical, Co., and its managing partner Jacob U. Policarpio, for failing to settle its P75.96-million tax assessment for 2006 despite various demand notices.
It also filed a complaint against Davao Cebusan Entreprises, Inc., and its responsible officers — president Edwindo Ty Ong, treasurer Elvira V. Ong, and officer-in-charge Rosita Lumasag — for “refusing” to settle their unpaid P7.29-million tax.
BIR said that after it was issued a preliminary collection notice, and a final notice before seizure, Cebusan paid the compromise penalty of P1,000 on withholding tax and the amount of P6,548.70 to cover its documentary stamp tax liability.
“Thereafter, they stopped communicating with the BIR and refused to pay their unpaid 2007 income and value-added tax liabilities,” Ms. Henares said, adding that the BIR issued a warrant of distraint, a warrant of garnishment and a demand notice that went unheeded.
Both Blue Rhein and Cebusan face charges for violating Section 255, in relation to Sections 253 and 256 of the NIRC.
Amest could not be reached for comment, as it no longer uses its number. Cebusan’s hot line could not also be reached.
Meanwhile, the BIR also filed a complaint against Cainta, Rizal resident Casimero U. Umacob for knowingly using a falsified Certificate Authorizing Registration (CAR) in the sale of a land parcel.
The case arose after the buyers, Rudy and Erlinda Soriano, eventually sold the land to another buyer. The couple discovered that the CAR used to effect the earlier transfer of land was “spurious” and was actually used for a different transaction before.
In effect, the BIR did not receive any tax payments from Mr. Umacob for capital gains tax (CGT) and documentary stamp tax (DST). The couple then executed a sworn affidavit and offered to settle the unpaid P38,749.86 and P9,697.70 CGT and DST.
Mr. Umacob now faces a complaint for violating Section 257 (b)(8) of the NIRC.
